What do all these people buy with ?! I have no liquid money to buy while supporting my family with my income. My investments are separate. Do they mean they are re-balancing and buying all these stocks with the Oil & Stock current crash or is it a downturn??

riptide wrote:What do all these people buy with ?! I have no liquid money to buy while supporting my family with my income. My investments are separate. Do they mean they are re-balancing and buying all these stocks with the Oil & Stock current crash or is it a downturn??

I keep a portion of my investments in really short term 0% bonds. They have pictures of famous people on them.

riptide wrote:What do all these people buy with ?! I have no liquid money to buy while supporting my family with my income. My investments are separate. Do they mean they are re-balancing and buying all these stocks with the Oil & Stock current crash or is it a downturn??

Which people are we talking about here? People in general, posters on this forum, someone in a specific news article?

I have plenty of liquid assets myself. They mostly compose of my EF and my next IRA contribution. I could time my IRA contribution if I feel the stock prices are artificially low, otherwise I can hold on to them to keep liquidity up until I'm ready to buy. I can also raid the EF, make a purchase and rebuild the EF later (it would have to be a huge crash and I'd have to be confident my job was secure). I won't really be ready to buy until I can officially do my taxes because I only want to put enough in my tIRA to get the savers credit, and the rest can go in a Roth IRA.

TradingPlaces wrote:Why is it, that, on every forum, the longest running threads are always titled:

Simple, for the vast majority of investors their true risk tolerance is lower than their need for risk. Personally I'd really prefer if the maximum downside on my portfolio was about 10%, but there is no way I'm going to achieve my goals with 80% bonds.

At current valuation levels, a prudent strategy would be to adopt a conservative AA and plan to save more to compensate. The immortality of this thread is testament to the anxiety about stocks. Sell some stocks, sleep better.

We don't know where we are, or where we're going -- but we're making good time.

Browser wrote:At current valuation levels, a prudent strategy would be to adopt a conservative AA and plan to save more to compensate. The immortality of this thread is testament to the anxiety about stocks. Sell some stocks, sleep better.

Your statement is immortal.

Victoria

WINNER of the 2015 Boglehead Contest. |
Every joke has a bit of a joke. ... The rest is the truth. (Marat F)

Browser wrote:At current valuation levels, a prudent strategy would be to adopt a conservative AA and plan to save more to compensate. The immortality of this thread is testament to the anxiety about stocks. Sell some stocks, sleep better.

Leeraar wrote:No one noticed that the Swiss have adopted a negative interest rate to keep out the rabble rouble. Down 300 tomorrow because of "European currency concerns"?

L.

Good point by shipmate Leerar, and as I understand (from reading BBC news early today) this takes effect in mid January 2015 affecting large banks and companies. Oh by the way, negative rate means you pay the bank to deposit your money, isn't that nice?